Slide 1: Q4 2022 Results Presentation
Exhibit 99.2 Q4 2022 Results Presentation March 1, 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as believes, anticipates, plans, may, intends, will, should, expects, and similar expressions are in
Slide 3: Agenda: 2023 Priorities, Outlook & Long-term Strategy, Q4 2022 Results
Our 2023 Priorities 6 2023 Outlook & 11 Long-term Strategy Q4 2022 Results 15 3
Slide 4: Kohl's has built a solid foundation for growth
Kohl's has built a solid foundation for growth Customers Stores Stores Active Customers Stores in 49 states 65M+ 1,170 Loyalty Members 30M+ Stores with 600+ Sephora Of Americans live Accessible and within 15 miles of 80% Aspirational Brand a Kohl’s store Portfolio Digital Of digital sales Digital sa
Slide 5: Long-standing focus on ESG stewardship
Long-standing focus on ESG stewardship KOHES OCares for People and Planet & al 2 communities Culture Community Climate ~100,000 $845M Net Zero by 2050 Associates i 8 5.5M+ 164 DEI Framework Tripling Spend introduced in 2020 among diverse suppliers by 2025 . = 72 EV charging locations waettt @nam Dow
Slide 6: Our 2023 Priorities
Our 2023 Priorities 6
Slide 7: CEO Tom Kingsbury quote on Kohl's foundation and priorities
“Kohl’s has a solid foundation and a highly motivated team with a set of priorities to capitalize on what I see as a substantial opportunity to make a difference in the retail landscape,” commented Tom Kingsbury, Kohl’s chief executive officer. “Our efforts to drive the business are already underway
Slide 8: Our 2023 Priorities
Our 2023 Priorities Enhance the Customer Experience Accelerate and Simplify Our Value Strategies Manage Inventory and Expenses with Discipline Strengthen the Balance Sheet 8
Slide 9: Focused on Four Overarching Priorities to Drive Improved Sales and Profitability
FOCUSED ON FOUR OVERARCHING PRIORITIES TO Drive Improved Sales and Profitability Enhance the Accelerate and Manage Inventory Customer Simplify Our and Expenses Strengthen the Experience Value Strategies with Discipline Balance Sheet • Sephora growth and • Simplified pricing • Heightened focus on • $
Slide 10: Driving continued growth through Sephora at Kohl's
Driving continued growth through Sephora at Kohl’s Delivering incremental $2 billion sales and traffic sales goal by 2025 and acquiring new customers • Successfully opened ~600 Sephora shops to date, including ~400 in 2022 • Achieved notable beauty market share gains in Q4, cementing Highly Sephora
Slide 11: 2023 Outlook & Long-term Strategy
2023 Outlook & Long-term Strategy 11
Slide 12: 2023 Outlook
2023 Outlook Metric Full Year Guidance (2%) to (4%) versus 2022, Net Sales includes a 1% benefit from the 53rd week Operating Margin Approximately 4.0% EPS $2.10 to $2.70 12
Slide 13: Focused on returning balance sheet to historical strength
Focused on returning balance sheet to historical strength through balanced capital allocation strategy • Committed to rebuilding cash balance and reducing leverage to our long-term target of 2.5 times • Will continue to prioritize investments in the business, followed by our commitment to the divide
Slide 14: Committed to Creating Long-Term Value
Committed to Creating Long-Term Value Kohl’s Long-term Financial Framework SALES GROWTH OPERATING MARGIN EPS GROWTH Low-Single Mid-to-High 7% to 8% + = Digits % Single Digits % Capital Allocation Principles Strong Significant Capital Invest in Growth Balance Sheet Returns 14
Slide 15: Q4 2022 Results
Q4 2022 Results 15
Slide 16: Q4 2022 Summary
Q4 2022 Summary Key Takeaways Q4 2022 • Net sales declined (7.2%) versus Q4 2021; comparable sales declined (6.6%) • Our fourth quarter results reflect an ongoing challenging macroeconomic • Gross margin decreased (1,016 bps) compared to last year driven primarily by increased clearance markdowns to
Slide 17: Q4 Key Metrics
Q4 Key Metrics Consolidated Statement of Operations Three Months Ended (Dollars in Millions) January 28, 2023 January 29, 2022 Net Sales $ 5,775 $ 6,220 Total Revenue 6,019 6,499 Gross Margin Rate 23.0% 33.2% SG&A 1,677 1,687 Depreciation 200 207 Operating (Loss) Income (302) 450 Interest Expense 78
Slide 18: Q4 2022 Gross Margin & SG&A Expense Performance
Q4 2022 Gross Margin & SG&A Expense Performance Gross Margin SG&A Expense Deleveraged (190 bps) vs Q4 2021 Decreased (1,016 bps) versus Q4 2021 $1,687M $1,677M 33.2% 23.0% % Total 26.0% Revenue 27.9% Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2022 Gross Margin Takeaways Q4 2022 SG&A Takeaways • Clearance ma
Slide 19: Appendix
Appendix 19
Slide 20: Reconciliations: Free Cash Flow
Reconciliations Free Cash Flow January 28, 2023 ($ in millions) Three Months Ended Twelve Months Ended Net cash provided by operating activities $ 707 $ 282 Acquisition of property and equipment (93) (826) Finance lease and financing obligation payments (25) (106) Proceeds from financing obligations
Slide 21: Slide 21